PetroChina reports record revenues in the first half of the year

PetroChina posted a record operating profit for the first half of the year on the back of rising crude oil and natural gas production that more than offset weak fuel demand in China.

PetroChina, the country’s largest oil and gas producer, saw net profit rise 3.9 percent year-on-year to $12.44 billion (88.61 billion Chinese yuan) in the first half of 2024, the company announced Monday.

Operating income rose 5 percent to $224 billion (1.6 trillion yuan) as oil and gas production increased and “The core business of oil and gas and other operations remained stable and profitable, with key production indicators steadily increasing,” PetroChina said in a Press Release.

“The company has achieved record operating results in the first half for three consecutive years,” it added, while reporting a rise in oil and natural gas production, up 1.3% year-on-year in equivalent terms oil.

PetroChina also benefited from higher international oil prices in the first half of 2024 compared to the same period last year.

Earlier this year, PetroChina reported its biggest first-quarter net profit as its revenue rose 11 percent thanks to steady oil prices and higher domestic demand and production of natural gas.

The company and other Chinese state-owned oil and gas giants have boosted domestic exploration and production as the world’s biggest crude importer seeks to shore up its energy security.

In the first half of 2024, PetroChina boasted “solid progress in scientific and preliminary exploration” of ultra-deep oil and gas deposits of 10,000 meters (32,800 feet) or more. Well-Shenditake 1 exceeded 10,000 meters, setting a new record for the deepest vertical well drilled in Asia, the company said.

Downstream, PetroChina responded to warm domestic fuel demand and “fluctuation” in market demand by optimizing crude oil resources, processing load, product mix and facility maintenance schedules. As a result, its processed crude volumes increased by 3% and refined products production increased by 2.1% compared to the previous year. Jet fuel production rose 42.4% as flying recovered and fuel demand increased this year.

However, analysts do not believe jet fuel alone could boost China’s global oil demand.

By Charles Kennedy for Oilprice.com

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